Open Access BASE2002

Lessons from the American experiment with market-based environmental policies

Stavins, Robert N

Open Access

Abstract

This paper provides an overview of the U.S. experience with market-based instruments with four categories: emission charges, tradeable permit systems,market friction reduction, and government subsidy reduction. Following that, I examine normative lessons that can be learned from these experiences, and then focus on positive political economy lessons. A final section offers some conclusions

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